​No. You don't need to file an Oregon corporation return if your corporation didn't do business in Oregon during any part of the year and had no Oregon source income. This applies even if you're registered to do business in Oregon.

Does Oregon allow the filing of a composite return for nonresident shareholders of an "S" Corporation?

Does Oregon follow federal treatment of LLCs considered "disregarded entities"?

​Yes.

Does Oregon follow the federal entity classification regulations?

​Yes. If an entity is classified or taxed as a corporation for federal income tax purposes, it will be treated as a corporation for Oregon tax purposes.

Does Oregon require corporate quarterly or estimated tax payments?

​Yes. You must make estimated tax payments if you expect to owe tax of $500 or more with your return. For more information, see instructions for the Oregon corporation form you file (Form 20, 20-I, 20-INS, or 20-S).

You can make estimated tax payments electronically using Revenue Online.

How do I assemble my return and where do I mail it?

​See instructions for the Oregon corporation form you file (Form 20, 20-I, 20-INS, or 20-S).

How do I file a protective claim?

​An amended return may be filed as a protective claim to extend the statute of limitations for a refund request for a tax year while an issue is being litigated. Don't file a protective claim on an original return.

Check the “Amended” box and write the words “Protective claim for refund” at the top. We’ll also accept a written letter in place of an amended return. Include the same information in the letter as is required on an amended return. We’ll hold your protective claim until you notify us the litigation has been completed.

How do I file an “Oregon only” extension for my Oregon return?

We don't have an extension form for Oregon, use federal extension Form 7004 instead.

Complete the top information, answer questions 4 and 5, and leave the rest of the form blank.

Be sure to mark the "Extension" box on the first page of the Oregon return.

How do we amend our corporate return? What form do we use?

​Use the same form type you originally used for the year you are amending; for example, use Form 20, Form 20-I, etc. Be sure to check the "Amended" box on the front of the return. If you're amending because you filed the wrong form, file the amended return on the correct form and mark the amended box. Also see the instructions for the Oregon corporation form you file (Form 20, 20-I, 20-INS, or 20-S).

How long after an IRS audit may Oregon issue a bill to me?

​Generally, up to two years after we receive notice of a change to your federal return.

If you are audited by the IRS and changes that were made to your federal return affect your Oregon return, you should file an amended Oregon return. Otherwise, Oregon may send you a billing notice up to two years from the date the department receives notice of a change to your federal return.

How many years can we carry back or carry forward a net operating loss (NOL)?

​Oregon allows corporate NOLs to be carried forward for up to 15 years. There is no net operating loss carryback allowed.

If I have an estimated tax account for the current year, and I amend a return or the department makes an adjustment that creates a tax liability, may I use funds in my estimated tax account to pay my liability?

​No. Estimated tax payments cannot be used to pay a tax liability for a prior year, regardless of whether the liability is created by filing an amended return or by adjustment of the return by the department. It is an irrevocable election to have an overpayment of a prior year tax applied to a current year estimated tax account. ORS 314.515 & OAR 150-314.515(2).

If we file as an "S" Corporation with the IRS, how do we file with Oregon?

​Political organizations (campaign committees, political parties) normally do not pay income taxes to state or federal governments. However, this changes if financial activities go beyond normal political operations.

Is Oregon corporation minimum tax a required addition on Forms 20 and 20-S?

​No. Oregon minimum tax is not required to be added back to federal taxable income on Forms 20 or 20-S. Only state taxes upon, or measured by net income or profits, are required to be added back on the Oregon return. ORS 317.314.

Note: Form 20-INS filers are required to add back any state income taxes deducted in computing net gain from operations. This includes Oregon minimum tax. ORS 317.655

We are a corporate member of a Limited Liability Company (LLC). How do we file for Oregon?

​IF THE LLC IS TAXED AS A PARTNERSHIP AND IS PART OF YOUR UNITARY BUSINESS: Include your ownership share of the LLC income in your net income subject to apportionment. Include your ownership share of LLC property, payroll, and sales in your apportionment factors. If the LLC has Oregon activity, include its factors in both the numerators and denominators of your factors.

IF THE LLC IS TAXED AS A PARTNERSHIP AND IS NOT PART OF YOUR UNITARY BUSINESS:Your income from the LLC is nonbusiness income. You must allocate it to this state as provided in ORS 314.625 through ORS 314.645.

IF THE LLC IS TAXED AS A CORPORATION AND IS PART OF YOUR UNITARY BUSINESS:Include the income of the LLC in net income subject to apportionment. Include the factors of the LLC, as appropriate, in both the numerators and denominators of the apportionment factors.

IF THE LLC IS TAXED AS A CORPORATION AND IS NOT PART OF YOUR UNITARY BUSINESS:Subtract the income of the LLC from the consolidated net income as income from a non-unitary corporation. If the LLC does business in Oregon or has income from an Oregon source, the LLC will be required to file its own Oregon return and calculate its Oregon tax based on its Oregon activities.

We are a limited liability company (LLC). How do we file for Oregon?

​File the same way for Oregon that you did for federal. For example, if you filed a partnership return for federal, then file a partnership return for Oregon (Form 65).

​“Doing business” means carrying on or being engaged in any profit-seeking activity in Oregon. A taxpayer having one or more of the following in this state is clearly doing business in Oregon:

A stock of goods.

An office.

A place of business (other than an office) where affairs of the corporation are regularly conducted.

Employees or representatives providing services to customers as the primary business activity (such as accounting or personal services), or services incidental to the sale of tangible or intangible personal property (such as installation, inspection, maintenance, warranty, or repair of a product).

An economic presence through which the taxpayer regularly takes advantage of Oregon’s economy to produce income.

What is the difference between a corporate excise tax return and a corporate income tax return?

​Every corporation doing business in Oregon must file a corporate excise tax return (Form 20, 20-INS, or 20-S) and pay the greater of computed tax or the minimum excise tax. Corporations not doing business in Oregon, but with income from an Oregon source, must file a corporate income tax return (Form 20-I or 20-S). There is no minimum tax for income tax filers.

See instructions for Forms 20, 20-I, 20-INS, 20-S for more information.

What is the difference between an S corporation and a C corporation?

​An S corporation is the incorporation of an ordinary business formed and operated under a state's general corporation law, but the corporation has applied to and been approved by the Internal Revenue Service to be taxed as an S corporation. An S corporation is generally treated like a partnership for federal income tax purposes. It files an "information" tax return to report its income and expenses, and isn't separately taxed.

Income and expenses of an S corporation "flow through" to the shareholders in proportion to their share holdings, and profits are taxed to the shareholders at their individual tax rates. If an S corporation has shareholders that are not Oregon residents, then the nonresident portion of the corporate income may be subject to a withholding tax for the non-resident shareholders.

What is the due date of the Oregon return when I have a federal extension?

​Oregon accepts the federal extension to extend the due date for filing your federal and state return. If you have a 6-month extension of time to file, your federal return is due 6 months after the original federal due date, and your Oregon return is due 6 months after the original Oregon due date.

Example: Your federal return is due March 15 with a 6-month extension to September 15. Your Oregon return is due April 15 with a 6-month extension to October 15.

The due dates for a fiscal year ending taxpayer apply to the 15th day of the fourth month following the end of your fiscal year. Be sure to include a copy of the federal extension when you file your Oregon return and mark the "Extension" box on the first page of the Oregon return. Don't send your extension to us until you file your Oregon return.

What is the statute of limitations for filing an amended return?

​Generally, the statute of limitations is three years from the date the return is filed or the due date of the return, whichever is later. For an amended return claiming a refund based on federal or another state's audit adjustments, the statute of limitations is generally two years from the date of the auditor's report, if that is later than the three-year statute.

If you file an amended return with the IRS and the changes affect Oregon taxable income, you must amend your Oregon return within 90 days of amending your federal return.

Consolidated returns—the minimum tax is $10 multiplied by the total number of corporations doing business in Oregon and included in the consolidated return. For tax years beginning prior to January 1, 2006, the minimum tax for an affiliated group of corporations filing a consolidated return is $10. The $10 minimum tax due for each affiliate included in the consolidated return doing business in Oregon is cancelled [ORS 305.145(3)].

Calculated taxFor tax years beginning January 1, 2013 and later:

If Oregon taxable income is $1 million or less, multiply Oregon taxable income by 6.6 percent (not below zero).

If Oregon taxable income is more than $1 million, multiply the amount that is more than $1 million by 7.6 percent, and add $66,000.

For tax years beginning January 1, 2011 and before January 1, 2013:

If Oregon taxable income is $250,000 or less, multiply Oregon taxable income by 6.6 percent (not below zero).

If Oregon taxable income is more than $250,000, multiply the amount that is more than $250,000 by 7.6 percent, and add $16,500.

For tax years beginning January 1, 2009 and before January 1, 2011:

If Oregon taxable income is $250,000 or less, multiply Oregon taxable income by 6.6 percent (not below zero).

If Oregon taxable income is more than $250,000, multiply the amount that is more than $250,000 by 7.9 percent, and add $16,500.

​The 15th day of the month following the federal due date. For most taxpayers, that's the 15th day of the fourth month following the end of your tax year. When the 15th falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Don't file your return before the end of the year.

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